More than 90% of UK travel buyers believe Air Passenger Duty (APD) is ‘too high’, a jump from 45% who thought this two years ago, according to a study published by ITM.
In its annual industry outlook survey of more than 100 UK based travel buyers there was a significant shift in negative feeling towards APD.
In 2012 ITM found 60% of travel buyers thought APD was ‘at the right level’ compared to 10% in 2014.
APD is a duty which is charged on the carriage of passengers flying from a UK airport. The amount of duty charged is calculated using a variety of factors. In its original form the minimum APD charge on a ticket was £5 and the maximum was £40.
Controversially APD has risen significantly since 2007 and the minimum now is £13 and the highest £188.
ITM said APD “isolates” the UK from the rest of the world as it’s one of the only countries which has an environmental tax. It claims this is wrong as none of the revenue from APD is used on environmental measures.
The study found buyers do recognise that businesses need to pay tax in order to see an increase in economic growth.
Buyers were asked about other business travel taxes such as car rental, city taxes and VAT and 55% agreed they were ‘high but understandable’, almost the same as 2012 when 53% agreed with this statement.
Data privacy
The study found 85% of travel buyers are ‘concerned’ about the privacy of both company and personal data. This is up from 45% who said this in 2012.
The study also showed 48% of travel buyers are not in control of the level of corporate travel data information available about their organisation within the travel supplier market place.
Tips for buyers
The study named its top five areas to focus on in 2014:
- Maintain and improve compliance
- Make it a priority to get closer to your travellers
- Make it a priority to get closer to internal stakeholders
- Integrate travel and expenses
- Stay connected with your peers
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